"A related misstep is choosing between the lump sum and annuity on instinct instead of analysis, even though that decision locks in tax timing, investment options, and how long the money is likely to last. Financial writers note that many winners default to the lump sum without modeling scenarios with professionals and understanding that, after taxes, the headline $1.7 billion quickly shrinks."
"Coverage in CNBC highlights that bragging about your win on social media or talking openly about it can invite lawsuits, scams, and constant money requests. Advisers repeatedly stress "keep it quiet" and, where allowed, explore ways to claim through a trust or remain anonymous to avoid becoming a target. Experts also point out that winners often underestimate the emotional toll of overnight fame, which can strain marriages, friendships, and even personal safety if boundaries are not set early."
Sudden mega‑lottery winners commonly make decisions that undermine long-term wealth. Acting too quickly — quitting a job, claiming the prize immediately, or making large purchases — often produces damaging, irreversible outcomes. Choosing a lump sum over an annuity on instinct can lock in unfavorable tax timing and shorten the money’s lifespan after taxes. Publicly announcing a win or posting on social media invites scams, lawsuits, and constant requests and can strain relationships and personal safety. Assembling a vetted team — an attorney, tax specialist, and fiduciary adviser experienced with sudden wealth — before claiming funds reduces error and preserves privacy.
Read at Fortune
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